STRATEGIC FRAMEWORK FOR INTERNATIONAL ENGAGEMENT BY THE AUSTRALIAN VOCATIONAL EDUCATION AND TRAINING (VET) SECTOR

Transcription

1 STRATEGIC FRAMEWORK FOR INTERNATIONAL ENGAGEMENT BY THE AUSTRALIAN VOCATIONAL EDUCATION AND TRAINING (VET) SECTOR

2 CONTENTS 1. PURPOSE OF THE STRATEGIC FRAMEWORK FOR INTERNATIONAL ENGAGEMENT BY THE AUSTRALIAN VET SECTOR AUSTRALIA S INTERNATIONAL EDUCATION AND TRAINING ENGAGEMENT THE AUSTRALIAN VET SECTOR INTERNATIONAL ENGAGEMENT BY THE AUSTRALIAN VET SECTOR WHY IS A STRATEGY FOR THE VET SECTOR S INTERNATIONAL ENGAGEMENT NEEDED? International Context Key Drivers Opportunities Challenges PROPOSED OBJECTIVES AND STRATEGIES NEXT STEPS GLOSSARY APPENDIX A: ADDITIONAL STATISTICAL INFORMATION International Activities of the Australian VET sector

3 1. PURPOSE OF THE STRATEGIC FRAMEWORK FOR INTERNATIONAL ENGAGEMENT BY THE AUSTRALIAN VET SECTOR The Strategic Framework for International Engagement by the Australian Vocational Education and Training (VET) sector, , is designed to support international engagement by the Australian VET sector by articulating some of the opportunities available and also some of the challenges faced. It is designed to encourage a shared vision, and greater collaboration and partnerships, amongst the key stakeholders of the sector. The Framework provides an overview of the Australian VET sector as well as Australia s international education and training engagement, in order to set the scene for the operating environment of the sector. Some key issues in the international education and training arena for the Australian VET sector have been highlighted. The Framework then proposes a range of objectives and strategies to maximise the opportunities available in the period The Framework informs, and is informed by, other policy developments and activities which are taking place. These include the Transnational Quality Strategy, Education Services for Overseas Students Act, National Code, the Strategic Frameworks for international engagement by the schools and ELICOS sectors, and the Brisbane Communiqué. It is not the intention of this Strategy to detail these initiatives, rather to reference them when developing objectives, strategies and activities. The Framework will guide a substantial program of work by Australian Education International (AEI) in , to support the sector s efforts to expand internationally in a sustainable way. Strategic engagement with the sector will be central to AEI s activities in so that the efforts of all stakeholders (governments and industry) add greatest value by being effectively focussed, coordinated and complementary. 3

4 2. AUSTRALIA S INTERNATIONAL EDUCATION AND TRAINING ENGAGEMENT International engagement has been a key aspect of Australian education and training for many decades. The Australian Government, through the 2003 Ministerial Statement, Engaging the World through Education, acknowledged the contribution international education and training engagement makes to Australia s social, cultural, intellectual and economic engagement with the world. Australia s international education and training underpins and fosters trade links. International education and training is Australia s fourth largest export earner, generating $10.7 billion in earnings in International engagement builds linkages between Australian education providers and overseas institutions. These links facilitate the exchange of ideas, research and technology, as well as staff and students. Education providers participating in the international environment also contribute to global knowledge and gain valuable insights into international developments that benefit Australian education and training. The presence of international students in our education institutions and local communities enriches the educational experience of Australian students, as well as stimulating their interest in learning other languages, cultures and studying overseas. Educating overseas students provides Australia with opportunities to contribute to the education of the next generation of world leaders. The formation of personal and institutional relationships through international engagement establishes enduring friendships and partnerships in business and government. These underpin Australia s broader national interests in defence and security, environmental protection and trade. Whole of Sector Engagement The Australian and state and territory governments consult and collaborate closely with the Australian international education and training industry. Industry encompasses both government and non government organisations providing educational services to international students, as well as peak education bodies that represent these organisations, for example: Australian Council for Independent Vocational Colleges (ACIVC), Australian Council for Private Education and Training (ACPET), Universities Australia (UA), English Australia (EA) and TAFE Directors Australia (TDA). While the Australian international education and training sector has achieved substantial success over the last ten years, a key priority for both government and industry is achieving sustainable growth for the sector, through diversification and quality: Diversification broadening the mix of international students and their countries of origin, the range of courses and levels of study, and modes of delivering education services; and Quality protecting and promoting the quality and integrity of Australian education and training, both onshore and offshore. 4

5 Whole of Government Engagement The Australian Government through Australian Education International (AEI), AusAID, Austrade, the Department of Foreign Affairs and Trade (DFAT), the Department of Immigration and Citizenship (DIAC), and the Department of Prime Minister and Cabinet (PM&C) actively encourages and facilitates Australia s international education and training engagement. AEI works to create an environment for successful international education and training engagement through: government to government cooperation; underpinning the quality of education and training services delivered to international students through a respected quality assurance and regulatory environment; promoting greater diversity of students, modes of education delivery and subjects offered; and coordinating government support in partnership with the Australian education and training industry. The Australian Government works closely with state and territory governments to develop a whole of government approach to Australia s international education and training engagement. For their part, the state and territories governments are actively engaged in: promoting Australian education and training internationally; recruiting international students; facilitating government to government and institutional linkages through signing of agreements, hosting visits and delegations, exchanging information and staff; providing support for student mobility; undertaking international projects and consultancies; and monitoring and regulating international activities of Australian providers. 5

6 3. THE AUSTRALIAN VET SECTOR The Australian VET sector comprises a diverse group of stakeholders, including: the Australian and state and territory governments; VET providers (government and non government); peak education bodies (ACIVC, ACPET, TDA); peak industry groups such as the Australian Chamber of Commerce and Industry (ACCI), the Australian Industry Group (AiG) and the Business Council of Australia (BCA); Industry Skills Councils; students; and, graduates. The sector plays a key role in ensuring Australia s ongoing strong economic performance, by equipping Australians with skills for a rapidly changing and globalising world. Key characteristics of the sector include: The VET sector is the largest Australian education sector, with 1.7 million students, equivalent to 11.5 % of the working age population, enrolled in publicly funded VET in Participation in VET extends throughout a persons working life. In ,131 students were in the year age group. The sector operates under a national training system which is industry led, competencybased, nationally consistent and quality assured. Industry and employers play a critical role in influencing training policy, priorities and delivery. The Institute for Trade Skills Excellence, an Australian Government initiative established in 2005, is predominantly industry led and aims to promote the quality of trade skills training and the status and profile of careers in trade to the wider Australian community. VET programmes can be undertaken through multiple pathways connecting schools, postsecondary institutions, the workplace, and articulation between the VET and higher education sectors. Australian Apprenticeships, a national scheme covering apprenticeship and traineeship arrangements, is a key VET pathway. Australian Technical Colleges, a 2005 initiative, enables senior secondary school students to undertake part time apprenticeships. All VET providers must be Registered Training Organisations (RTO). There are nearly 4200 RTOs in Australia. Government funded or public RTOs include colleges and institutes of Technical and Further Education (TAFEs). Non government or private RTOs include independent colleges, commercial training businesses and industry, business associations. Of the 1,217 providers registered on the Commonwealth Register for Institutions and Courses for Overseas Students (CRICOS), 477 offer VET courses. VET qualifications are awarded under the Australian Qualifications Framework (AQF), and include Certificates I IV, Diploma and Advanced Diploma. The sector is actively engaged internationally and is world renowned for its capacity to provide flexible, diverse, quality training outcomes. In 2006, the Australian Government provided funding for the establishment and operation of a new Australia Pacific Technical College, to provide Australian standard training to students from Pacific islands. Industry and employers play a critical role in influencing training policy, priorities and delivery, 6

7 Industry Skills Councils (ISCs) are an essential underpinning element of Australia s national vocational education and training system. They are the bodies that develop Training Packages, which are nationally endorsed competencies and qualifications designed in consultation with employers and industry to ensure consistent training across Australia that meet employers skill requirements. While they are funded by the Australian government, ISCs are independent companies with Boards drawn from industry. Quality of the VET system High quality training is an important feature of training in Australia, and is taken seriously by all partners in the national training system. The quality of vocational education and training is assured through nationally consistent quality assurance of training services and products wherever it is delivered. The National Skills Framework provides the basis for high quality, flexible, nationally consistent vocational education and training which meets industry needs and which employers can trust. The Framework consists of quality delivery through the Australian Quality Training Framework (AQTF 2007), and through quality training products. AQTF 2007 sets the standards for the operation of training organisations registered to deliver training services and to issue VET qualifications. Training products include national training packages and accredited courses which outline the qualifications, competencies and assessment criteria for specific areas of training. These two dimensions form the National Skills Framework. The National Quality Council is responsible for overseeing the effective operation of the Framework. State and territory governments have primary responsibility for managing and administering VET, but operate within a framework of nationally agreed policies and strategies. Some of their functions include regulating RTOs by assuring the quality of training by confirming all RTOs meet and adhere to the guidelines established under the AQTF 2007 through a registration and audit process, allocating funding to both public and private providers and managing TAFEs. Commonwealth legislation, the Skilling Australia s Workforce Act 2005, sets out the national objectives and goals for VET as well as governance, funding and accountability arrangements: Governance In November 2005, the Ministerial Council on Vocational and Technical Education (MCVTE), comprising the Australian and state and territory government VET Ministers, was established to provide strategic direction for the national training system. Key groups that advise MCVTE include the National Industry Skills Council, National Senior Officials Committee and National Quality Council. Funding The Australian Government contributed $2.6 billion to VET in , with a record $11.3 billion committed over four years (from to ). State and territories contribute nearly two thirds of government VET funding. Industry also makes significant investments in the sector. Current Reforms The Australian VET sector is focussed on reforming the national training system, in order to meet the skilled labour needs of the Australian economy over the next decade. With the aim of improving productivity and workforce participation, the Australian Government, in partnership with the states, territories and industry, is developing a demand driven system that will be even more responsive to the needs of industry and employers. Characteristics of this evolving system include: Industry focus and involvement in curriculum development and training package structures. A highly defined system of training packages which provides flexibility in delivery and modification to meet particular needs. 7

8 Increased participation by mature age workers, including re entry to the workforce. Ease of articulation between education sectors and institutions, based on the AQF. Quality training outcomes, including safeguarding Australia s international reputation. The Australian Quality Training Framework (AQTF) 2007, implemented in June 2007, has put in place an outcomes focussed, risk based approach to protecting and promoting the quality of VET delivered onshore and offshore. A mix of public and private sector provision providing a diversity of supply and the ability to quickly respond to particular training requirements. In 2006, the Australian Government announced the Skills for the Future package, allocating $781 million for VET related initiatives over the next five years. The package is focussed on improving the basic skills of Australia s workforce. New initiatives include: Work Skills Vouchers, Business Skills Vouchers for Apprentices, support for mid career apprentices, and incentives for increasing training in higher level qualifications, at the Diploma and Advanced Diploma level. Additional VET related initiatives also featured in the 2007 Budget including: three additional Australian Technical Colleges in northern Perth, southern Brisbane and the greater Penrith region of New South Wales; wage top up assistance for apprentices, assistance to RTOs to work with industry and local employers to develop and implement fast track apprenticeships ; and the extension of FEE HELP to include full fee paying students in Diploma and Advanced Diploma courses that are accredited as VET qualifications, where agreed credit for a university degree is available to the student. 8

9 4. INTERNATIONAL ENGAGEMENT BY THE AUSTRALIAN VET SECTOR The Australian VET sector has significantly increased its international engagement in recent years, with considerable success. Currently, the VET sector engages in four key activities: 1. International student recruitment, both onshore and offshore Onshore delivery of Australian VET qualifications is well established. Attracting international students to study in Australia is core business for many Australian VET providers, with over 83,000 onshore enrolments in Offshore delivery has also grown substantially. Thirty five public providers delivered Australian VET qualifications offshore to 30,200 students in Systems development A number of countries currently reforming their VET systems have sought advice and assistance from Australia on modelling our internationally recognised system, in particular, our qualifications and quality assurance frameworks. This is mostly done on a fee for service basis. 3. Sale and delivery of customised training, offshore Australian VET providers are selling and delivering customised training methodologies, curriculum and packages offshore, responding to the needs of employers and industry in overseas countries. 4. Professional development Australian VET providers are supporting the skills development of overseas VET trainers, primarily on a fee for service basis. There is substantial opportunity for the Australian VET sector to expand activity in these four areas. Opportunities will be discussed in more detail under Section Five of the Strategy. Statistical Overview Onshore Enrolments International VET students enrolled onshore in Australia contributed an estimated $1,865 million to the Australian economy in Onshore enrolments cover those international students studying in Australia, on student visas 1. The following statistics reflect onshore VET enrolments in In 2006, international student enrolments in Australia totalled 383,818, representing almost 40% growth since Higher education enrolments accounted for 45% of these enrolments while VET was the second largest education sector with 83,685 enrolments (22% of the market), followed closely by the English language (ELICOS) sector. From 2005 to 2006, VET s growth rate outstripped that of higher education. VET enrolments grew by almost 26%, while higher education increased by 5%. Enrolments in the ELICOS and school sector also increased, but to a lesser extent. Students from a wide range of countries come to Australia to study VET 183 different nationalities in The three largest markets for VET enrolments were China, India and the Republic of Korea. Emerging growth markets include Brazil, Bangladesh and Sri Lanka. 1 AEI derives international student enrolment and commencement data from the Commonwealth Provider Registration and International Student Management System (PRISMS) database which only includes students studying in Australia on student visas, with providers registered under Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). Enrolments represent the total number of international student enrolments at a given point in time. Enrolment data in the Strategy is based on Dec 2006 AEI data. 9

10 Much of the growth in international VET enrolments between 2002 and 2006 has occurred in New South Wales, Victoria and Queensland. With 50% of all VET enrolments, New South Wales dominates the international VET market in Australia, with Victoria as the second largest destination (with a 28% share). Enrolments have grown for both government (TAFEs) and non government (or private) VET providers, with those for non government providers growing at a greater rate than those of government providers. In 2006, VET enrolments with non government providers accounted for 78% of total enrolments (with more than 65,000 enrolments). In 2006, 80% of enrolments were at the Diploma and Advanced Diploma levels, with 20% at the Certificate I IV levels. The top three fields of study for international VET enrolments in 2006, were services, hospitality and transport (up 72% on 2005 enrolments); business administration and management (up 11% on 2005); and computer science and information systems (down 7% on 2005). Offshore Enrolments Offshore enrolments cover those international students who study Australian VET courses with RTOs in other countries. Currently, data on offshore enrolments is limited to National Centre for Vocational Research s (NCVER) survey of government funded Australian VET providers activities offshore. AEI in consultation with the VET sector and through the Transnational Quality Strategy has identified and agreed on ways to improve future data collection on the offshore education and training activities of Australian VET providers. While the NCVER data collection will be collected, the new AQTF 2007 Essential Standards for Registration provides for information to be gathered against quality indicators. From 2008, providers will be able to indicate, under the Competency Completion Rate indicator, if they have been delivering AQF qualifications outside of Australia in the past year. This information will enable AEI on behalf of the VET registration authorities to conduct a survey of those providers that indicate they have been operating offshore that will provide, once aggregated, a complete picture of the scale and scope of Australian VET offshore engagement. The following data was collected by the NCVER on behalf of AEI, and is based on 2005 figures: There were approximately 30,200 VET offshore students enrolled with Australian public providers, representing a 28% increase on the 23,600 students studying offshore in Over three quarters of these students (23,200) studied in China, followed by Fiji and Vietnam. Diplomas were the most commonly delivered qualifications (to 46% of the students); Management and commerce and Society and culture were the most common fields of education; 35 public providers (just over half of all TAFE institutes) were involved in VET offshore delivery in 2005, delivering to 22 countries. Victorian public providers accounted for over half of all VET offshore students. Additional statistical information is provided at Appendix A. 10

11 5. WHY IS A STRATEGY FOR THE VET SECTOR S INTERNATIONAL ENGAGEMENT NEEDED? The Strategic Framework for International Engagement by the Australian Vocational Education and Training (VET) sector, is designed to support international engagement by the Australian VET sector by articulating some of the opportunities and some of the challenges faced. It is designed to encourage the development and implementation of a shared vision, and greater collaboration and partnerships, amongst the key stakeholders of the sector. The following section highlights some key issues in the international education and training arena for the Australian VET sector. The section also proposes objectives and strategies for the Australian VET sector to maximise and grow opportunities available in the period International Context World Bank forecasts of future economic growth rates for the world suggest continued significant growth over the next few years. Already, developing countries that have experienced significant growth over the past decade (for example, India and China) are experiencing skills shortages that place education and vocational skills development at the top of national development agendas. India India 2 currently faces a challenge of scale educating a massive population to produce enough qualified people to service rapidly expanding industries. India s higher education sector has 9.5 million students in 346 universities and 16,500 colleges. In comparison, there are 1 million students in nearly 5,000 VET institutions. The current participation rate in VET is 1% of the eligible population. India aims to increase the participation rate to 23% in the next years. India is experiencing an acute shortage of employable manpower for industry. It has a young population, almost 50 percent of people are under 25 years of age, and almost 75 % (close to one billion) is below 40 years of age. Major challenges for India (and opportunities for other countries) include: expanding the provision of VET, developing a national qualifications framework and sourcing technically qualified people. In his Independence Day address on 15 August 2006, Prime Minister Manmohan Singh reconfirmed his government s commitment to developing the VET sector: As our economy booms and as our industry grows, I hear a pressing complaint about an imminent shortage of skilled employees. As a country endowed with huge human resources, we cannot let this be a constraint. We are planning to launch a Mission on Vocational Education so that the skill deficit in our economy is addressed. 2 Presentation by Professor Damodar Acharya, Chairman of the All India Council for Technical Education, DEST International Education Forum, April

12 China With a population of 1.3 billion people, China has the largest education system in the world with 260 million students. There are approximately 22.7 million people in vocational training. In November 2005, the Chinese Central Government announced a substantial increase in funding (US$1.23 billion over the next five years, ) to reform and develop the Chinese VET system. The reforms will focus on improving the quality of vocational education and training, raising workers skills levels, re integrating unemployed workers into the labour force, and increased provision to rural areas. The government has set a goal of producing more than 25 million medium level VET graduates and more than 11 million higher level VET graduates during Several central European countries (Czech Republic, Poland, Slovakia and Hungary) are experiencing strong demand for VET skills due to skill shortages arising from rapid economic growth. Significant opportunities for VET capacity building and skills transfer exist in Middle Eastern countries embarking on major domestic reforms, particularly Saudi Arabia and United Arab Emirates. The Latin American region represents a large, emerging market for VET as countries like Brazil and Colombia seek to educate and skill large, youthful populations. In addition, some South Asian countries (for example, Malaysia, Thailand and Vietnam) are experiencing VET skills imbalances. Many developed countries, like Australia, are experiencing labour shortages due to ageing populations and declining birth rates. At the same time, these countries face increased demand for higher levels of skills, often in new industries. Australia Australia has an ageing population. Over the next 40 years, the proportion of the population over 65 will almost double to around 25%, while growth in the traditional workforce age (15 64) will slow to almost zero. 4 Due to its ageing population, Australia faces a potential shortfall of 195,000 workers in five years time. 5 Australia is also experiencing skills shortages in traditional trades (for example, hairdressers, automotive tradepersons, chefs, carpenters, electricians, bricklayers) as well as professions (including accountants, engineers, childcare workers and health professionals). Based on projections for , the Australian VET sector will need to supply a total of 2.47 million qualifications. Based on current supply, there will be a net shortfall of around 240,000 people with VET qualifications. 6 Demographic shifts, technological advances and trade liberalisation will also alter the shape of the international education and training market: The world is experiencing a growing youth bulge with an expected 2 billion teenagers on earth in This group will be technologically savvy and increasingly mobile, for study and work 7. As such, they will require global qualifications that are easily accessed, affordable and internationally recognised. This will lead to an increased demand for offshore or transnational education and training, delivered on line, via offshore campuses or in partnership with local institutions. Ageing populations in developed countries will require lifelong learning. Re educating and up skilling mature aged workers to improve productivity and workforce participation will be a priority for many countries as they seek to increase their supply of skilled labour. 3 Chinese Government Media Releases, 8 and 10 November Commonwealth Treasury Australia s Demographic Challenges Appendix 5 Department of Employment and Workplace Relations (DEWR) report Workforce Tomorrow: Adapting to a more diverse Australian labour market, Centre for the Economics of Education and Training (CEET) report The Future Labour Market and Qualifications in Australia 7 Presentation by Andrew Zolli, US Futurist, DEST International Education Forum, April

13 With increased trade liberalisation and provision of distance and on line education, there will be a significant increase in the number of suppliers of international education, particularly from the private sector. This increased competition will put pressure on current suppliers to differentiate their products and services. At the same time, consumers (students, parents, teachers, businesses) will be focussed on buying quality in this mass education market. Curriculum will become more internationalised, with industry and employers exerting greater influence over course content, to meet demand for skills in new industries. There will be continued strong demand for English language skills in the global marketplace and more countries are offering courses taught in English to attract international students. In addition, languages of major economies will grow in importance. Increased competition from traditional and new suppliers of educational services will also alter the way in which countries engage internationally. Diversifying source markets for international students is one way in which countries are responding to increased competition. For example, many countries (including Australia) have a high level of dependence on the Chinese market for international student enrolments, both onshore and offshore. This scenario is likely to continue as China faces a massive task in educating and skilling its population. However, in order to achieve sustainable growth in international student recruitment, countries are identifying and responding quickly to emerging opportunities in other regions, including South Asia (particularly India and Pakistan) and Latin America (Brazil and Colombia). Key Drivers In this context, there are three key drivers for increasing enrolments in courses provided by the Australian VET sector both on and offshore: pathways; skills shortages; and skilled migration. Pathways Many international students follow study pathways through the Australian education system rather than limiting their study to a particular sector or level of the education system. 8 The VET sector is an important component of the pathways options for international students, both as a pathway to other studies and as a destination in its own right. In the period 2002 to 2005, 28.5% international students in the Australian education system were multiple sector students. More than half (52.2%) of multiple sector students had a study pathway through VET. Skills shortages Many countries are recognising that they have significant skills needs, and that training through the vocational education and training system, not the higher education system, is necessary to address these skills shortages. This has led to an increase in the value given to VET qualifications, and therefore in the interest in undertaking an Australian VET qualification. Skilled migration Some countries are addressing labour and skills shortages, in part, through skilled migration. Consequently international students are attracted to study in these countries, including Australia, as a pathway to permanent residency. Under its General Skilled Migration (GSM) Programme, the Australian Government has targeted migrants with skills in demand, for permanent residency. Skills in demand are identified in DIAC s Migration Occupations in Demand List (MODL). Anecdotal evidence suggests that the MODL has influenced the study choices of international students as well as courses offered by Australian education and training providers. 8 Study Pathways of International Students in Australia, 2002 to

14 However, changes to the GSM are due to be implemented from September 2007, with tighter requirements on links between study, work experience and nominated occupation. It is anticipated that these changes, as well as the inclusion of 50 point occupations into the GSM list and the introduction of the two new temporary visas (485 graduate visa and 476 overseas recognised graduate visa), will reduce the impact and influence of the MODL. Opportunities In the international environment outlined above, there are a number of opportunities for the Australian VET sector to expand and enhance its international engagement. These opportunities have been identified through consultation with the sector and research and intelligence gained through the DEST International Network. Many opportunities reflect an expansion of activity already taking place (as discussed in Section 4), however, some represent new fields of activity for the sector. These opportunities include: Onshore international student recruitment Opportunities exist to expand VET delivery in Australia, attracting international students from traditional source markets (such as China) as well as emerging markets in South Asia, Europe, Middle East and Latin America. In addition, to increased economic return, expanded onshore delivery can also lead to articulation to higher levels of training or education (for example, university) and additional course offerings for Australian students. Offshore course delivery The Australian VET sector is already working successfully offshore, but opportunities exist to expand offshore delivery (transnational education and training). In country provision is an affordable option for locals wishing to access an Australian based education, obtain an internationally recognised qualification that they cannot otherwise access via home institutions, or for some, the aspiration to articulate into a course onshore in Australia. Expanding offshore delivery also provides opportunities for Australian students to study abroad with these providers and could assist those Australian industries facing global skills shortages, such as the mining industry. Australian VET providers can take advantage of increased demand for in country provision by delivering courses in partnership with local institutions. Systems development Reforms to the Australian VET system over the last ten years, (focussing on quality, flexibility, diversity and linkages to industry users) have placed Australia in a competitive position to assist other countries in reforming and redeveloping their VET systems. While work in this area is already taking place, there is still huge potential for commercial opportunities in the form of consultancies, intellectual property transfer etc. For example, governments in India and Pakistan have initiated dialogue with AEI in regard to developing VET systems and frameworks, including qualifications frameworks and associated curriculum. Modelling Australia s VET system and frameworks in other countries also has other long term benefits, such as facilitating mutual recognition of qualifications. Student mobility Two way student mobility generates opportunities to build people to people linkages and networks, and showcases Australia s excellence in education, science and training. In addition, increasing international study opportunities for Australian students provides educational and personal growth benefits, the potential to develop intercultural competence and understanding, as well as the skills relevant to the needs of Australian business and employers. Scholarships and student exchanges directly increase the number of international students studying in Australia as does expanding recognition of VET qualifications internationally. There are also opportunities to encourage greater student mobility amongst Australian students. In addition there is scope to explore the internationalisation of VET curricula to produce the skills workers need for an international economy and an internationalised labour force. 14

15 International aid projects Increasingly, international aid organisations and multilateral banks (such as the World Bank and Asian Development Bank) are directing development assistance to providing basic education within developing countries. Furthermore, development assistance is increasingly untied providing greater opportunities for Australian providers. Accessing Australian and internationally funded aid projects will present emerging opportunities for the Australian VET sector. Collaboration through partnerships with public and private providers, or providers and consultants could increase the success of achieving such projects. AusAID s White Paper on the Australian Government s Overseas Aid Programme says that Australia is also increasing its investment in development assistance to improve access to school education, strengthen national school systems and build skilled workforces using technical and vocational programmes. Challenges In taking advantage of these opportunities, the Australian VET sector faces a number of challenges. These include: Increasing competition with expansion in the number of suppliers and ways of delivering education internationally, Australia is faced with increasing competition from traditional competitors (Germany, United Kingdom and United States) as well as emerging suppliers (Japan, Malaysia, Singapore). Strategic engagement internationalisation must fit with providers strategic goals and based on solid business considerations. For example, offshore delivery presents a number of difficulties including facing different legal environments and presenting different establishment and operating costs. Regulatory environments Lack of clarity of regulator roles and/or transparency in the regulatory environment can be impediments to sustainable international VET activity. Maintaining quality assurance The reputation and integrity of Australian VET needs to be protected and supported in Australia and internationally. A nationally consistent approach is required to continue to safeguard Australia s reputation for quality education and training services and ensure that Australian qualifications are recognised and valued. Australian visa system and policies Changes to the Australian visa system and policies, including those affecting international students and general skilled migration have the potential to change the nature of the international student market in particular countries or for particular sectors. In addition, increases in the cost of the visa process can be a deterrent for some applicants. Investment/re investment Investment in infrastructure to support and enhance quality of provision for international students, eg support services for international students English language skills, opportunities to engage with local students. Intellectual property transfer As Australia continues to promote its VET system internationally, there is concern that providing overseas governments and institutions with free Australian designed intellectual property (for example, training packages) could diminish Australian s competitive advantage in the longer term. At the same time, it is in Australia s interests to ensure that emerging countries model the Australian VET system rather than competitors, for example, Germany. Status Global skills shortages have increased the recognition of the value of Australian VET qualifications internationally. However, there is still some way to go with VET qualifications, often being accorded lower status than higher education qualifications, particularly in the minds of students and parents. Remuneration (or future earnings) attracted by VET qualifications is still often lower than for higher education. 15

16 6. PROPOSED OBJECTIVES AND STRATEGIES A range of objectives and strategies are proposed aimed at maximising Australia s competitive advantage, and expanding and enhancing the international engagement of the Australian VET sector over the next five years. Objectives The Strategic Framework aims to: 1. (a) Sustain a rate of growth for onshore VET enrolments over the next five years through diversification and quality. (b) Support increased offshore quality delivery by Australian providers independently, in partnership with Australian industry, in partnership with local business, and in partnership with local providers. 2. Stimulate student and worker mobility through expanding recognition of Australian qualifications internationally. 3. Promote recognition of Australia s VET system as a good practice model and assist other countries to develop their VET systems through the adoption of relevant elements of the Australian system. 4. Work to ensure that as far as possible activities undertaken to promote international VET engagement by DEST, state and territory jurisdictions and VET related peak bodies support and complement each other. 16

17 Strategies for achieving objectives Objective 1.(a) and 1.(b) (a) Sustain a rate of growth for onshore VET enrolments over the next five years through diversification and quality. (b) Support increased offshore delivery by Australian providers independently, in partnership with Australian industry, in partnership with local business, and in partnership with local providers. These objectives will be achieved by: Market intelligence Currently, a range of market intelligence is available to the Australian VET sector from both the Australian Government and other sources. For example, AEI provides comprehensive, quality and timely information about in country education developments, policies and environments that may affect Australian providers ability to operate internationally. AEI also provides international student commencement and enrolment data, qualification assessment information, research reports and publications. Enhancing the market intelligence available to the Australian VET sector through additional research and analysis that meets the sector s needs could enhance the sector s international engagement. This market intelligence may include: identifying Australian industries facing skills shortages in the international environment, with the aim of identifying opportunities for Australian education and training providers. developing and maintaining guides to regulatory requirements governing offshore operation and quality processes in key international markets. providing regular market alerts on international VET contracting opportunities arising from multilateral development banks and international development assistance programmes. evaluating the offshore commercial activities of Australian VET providers with the aim of identifying successes and good practice activities. identifying trends in international VET, in key markets (from the perspective of industry and providers, rather than students). An International Student Survey (ISS), the first major study of its kind in a number of years, is currently being completed. The Survey covers all education sectors and will provide data on students course choices and satisfaction with course quality, pastoral care and student services. Students will also provide information on future plans after completing their study. AEI will distribute the nationally aggregated results to peak bodies, participating providers and key stakeholders. Promotion and marketing AEI communicates Australian education and training through the Study in Australia brand. The objective of Study in Australia is to raise awareness of the unique study opportunities in Australia, across all education levels, fields and sectors within the Australian education and training system. In December 2006, AEI completed an evaluation of Study in Australia to gauge how the brand is performing with stakeholders and to recommend any refinements. The evaluation found that overall the brand is performing well against competitors such as the United Kingdom, United States and Canada and also identified some scope to raise the profile of VET under Study in Australia. 17

18 Strategies to augment generic promotion of the Australian VET sector may include: production of VET specific marketing communication material. developing a standard VET brief, or capability statement, for government and sector representatives to promote consistency of approach and provide up to date information on the Australian VET sector. offshore missions, exhibitions, fairs and symposia to showcase Australia s VET system as well as provide support for VET industry sponsored conferences and seminars through the provision of speakers and funding for key participants. collaborating with Australian companies with operations overseas. These companies may be in a good position to assist in the marketing of the Australian VET sector as they have experience of the benefits of the system. identifying niche opportunities and then developing niche approaches to marketing. This may include identifying and bringing together quality providers of niche disciplines (in areas of skills shortages such as mining), as well as industry users, to develop sophisticated and highly targeted engagement and promotion strategies. delivering seminars designed to disseminate good practice in (i) marketing in the international environment and (ii) supporting international students, both offshore and onshore. exploring the possible development of alumni networks of VET qualified students, on either an institution or wider network basis. Alumni can be a significant marketing resource, providing word of mouth references for providers. Employment and business networks developed by alumni are also very valuable for newly qualified individuals. This exploration will take into account the view that pathway students often identify with their destination institution, rather than the VET provider. Professional development for VET providers For many Australian VET providers international engagement represents a significant risk. In order to work successfully in an international environment, these providers require personnel with appropriate skills. These include marketing skills; business development skills such as risk management, raising venture capital, entrepreneurship, strategic planning and financial management; and skills for managing international students. Professional development opportunities are also available through the Endeavour Executive Awards which enable high achieving Australians working in professional fields (such as business, industry, education or government) to work in an associated field in an overseas host country. These awards allow recipients to spend from one to four months in an overseas work environment and awards can be taken in the form of study tours, workshop participation, internships, residencies, attendance at conferences and mentoring. Professional development priorities and opportunities could be identified and materials and training programs developed where they do not already exist. Organisations such as International Education Association of Australia (IEAA), Austrade, and the International Student Advisers Network of Australia (ISANA) International Education Association Inc may have a role to play. Australian visa system and policies DIAC is supporting AEI and the Australian VET industry to undertake outreach activities designed to improve the quality of student visa applications. This may lead to lower rates of visa refusals, cancellations and fraud and ultimately, lower assessment levels for the VET sector. DIAC is also reviewing the methodology for determining visa assessment levels. Improved predeparture counselling of potential students could also help improve the selection of bona fide student visa applicants. AEI will continue to work with the industry and with DIAC to address VET issues associated with student visa applications and skilled migration. 18

19 Objective 2. Stimulate student mobility through expanding recognition of Australian qualifications internationally. This objective will be achieved by: Recognition of qualifications Qualifications recognition is a priority issue for many countries and their governments. The European Union is implementing the Copenhagen Reform Process to increase cross border recognition of VET qualifications, for the benefit of European students and employers. As part of education reforms, a number of countries are developing qualifications frameworks modelled on best practice systems in other countries. Australia commits substantial resources to recognising overseas qualifications, in order to safeguard Australia s educational standards. AEI does this by providing: timely, reliable, comprehensive intelligence on education systems and qualifications frameworks in key markets (through Country Education Profiles); quality advice and guidance on the comparability of overseas qualifications against the AQF; and professional development services for industry. Increasing the international recognition of Australian VET qualifications is a goal for the Australian VET sector and a key factor in expanding the sector s international engagement. It is possible to build greater recognition of Australian qualifications. AEI will continue its significant investment in promoting the Australian approach to qualifications frameworks, or the AQF itself, to overseas governments, industry, employers, providers, students, teachers and parents. This could increase demand for Australian VET qualifications and systems, and establish cross border linkages to facilitate mutual assessment of qualifications by education and training providers and employers. In addition, mutual recognition arrangements could be developed for specific VET competencies. Niche competencies could be identified and teams established in partner countries (comprising industry, education providers and recognition experts) to develop these mutual recognition arrangements. Student mobility Australian students lag behind their international counterparts in embracing opportunities for international study. Australia has much to gain from encouraging more students in all education sectors to benefit from an international study experience, and to do so in a broader range of countries than is currently the case. The Australian Government is committed to encouraging Australian students to study offshore because of the educational and personal growth benefits, the potential to develop intercultural competence and understanding, as well as skills relevant to the needs of Australian business and employers. There is also the broader, more strategic rationale related to Australia's relations with other countries and the need to compete in the international education arena from a position of greater reciprocity. In this context, DEST is undertaking a review of Australian student mobility practices, to identify barriers and strategies the Government could consider to boost participation. The Government will consider options for a national Australian student mobility strategy in 2007/08. Scholarships also stimulate student mobility. In April 2006, the Australian Government announced Australian Scholarships, a $1.4 billion initiative to double the number of education awards for the Asia Pacific region over the next five years (to 19,000). AEI and AusAID jointly manage this initiative. 19

20 The Endeavour Programme forms part of Australian Scholarships. Endeavour brings high achieving students, researchers and professionals to Australia to undertake short or long term study, research and professional development, in a broad range of disciplines. The programme also encourages Australians to do the same abroad. VET scholarships are offered under the Endeavour Programme. The Endeavour VET Awards enable students from the Asia Pacific and Middle East regions to undertake a Diploma or Advanced Diploma course at an accredited Australian training provider (public or private), located in Australia. Awards are open to all fields of study and are valued up to $AUD 95,000. Up to 240 Endeavour VET Awards will also be available over the next five years ( ), including an additional 100 awards for Pakistani VET students during the same period. Objective 3. Promote recognition of Australia s VET system as a best practice model and assist other countries to develop their VET systems through the adoption of relevant elements of the Australian system. This objective will be achieved by: International government to government engagement Government to government relations provide a sustaining and welcoming environment for international education and training engagement. Strategies to continue the significant investment in international government to government engagement on VET issues include: organising outbound missions by Australian Ministers, senior government officials and industry representatives, to key markets. hosting inbound visits by high level VET delegations, from existing and emerging markets. supporting bilateral or multilateral conferences. signing bilateral or multilateral agreements to advance cooperation in VET, including the negotiation of free trade agreements (FTAs). advancing Australia s VET interests in key multilateral fora, such as APEC, WTO, OECD. Objective 4. Work to ensure that as far as possible activities undertaken to promote international VET engagement by DEST, state and territory jurisdictions and VET related peak bodies support and complement each other. This objective will be achieved by: Quality Assurance and Consumer Protection Frameworks Much of Australia s international engagement success can be attributed to its world class regulatory systems that include quality assurance and consumer protection frameworks, in particular, the Education Services for Overseas Students (ESOS) Act The ESOS Act and its associated legislation is the legal framework governing the responsibility of education institutions towards international students studying in Australia, on student visas. The recent implementation of the ESOS National Code 2007 has enhanced the framework. It ensures nationally consistent standards for registration and conduct of providers on the ESOS Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS); clarifies obligations for all providers; and sets out the roles and responsibilities of governments in regulating the international education and training sector. 20